BBDC Stock Overview
Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940.
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Barings BDC Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$8.80|
|52 Week High||US$11.55|
|52 Week Low||US$8.74|
|1 Month Change||-13.73%|
|3 Month Change||-6.08%|
|1 Year Change||-19.85%|
|3 Year Change||-14.06%|
|5 Year Change||-38.38%|
|Change since IPO||-45.00%|
Recent News & Updates
Barings BDC: A Cheap Capital Markets Investment Company, But Trending Lower
Summary Investors have found relative safety in high-dividend companies this year. Financials engaged in Capital Markets have not caught a bid, though. One firm is caught in the middle and features somewhat low volatility and a solid dividend. The technicals are not so sanguine, however. What's worked in 2022? High dividend stocks. The iShares Core High Dividend ETF (HDV) is positive since last November, back when so many once-high-flying tech stocks and small caps peaked. What hasn't worked in that time? Capital Markets stocks, as evidenced by a 27% plunge in the SPDR S&P Capital Markets ETF (KCE). Amid a freeze in IPO activity and reduced M&A as interest rates have risen, Financials sector stocks that rely on dealmaking have struggled. This comes as some niches of the sector are doing fine, such as regional banks. One small closed-end management company that targets the middle market for investment opportunities pays a big dividend, but it, too, is stuck in a downtrend. Hot: Dividend Stocks. Not: Capital Markets Companies. Stockcharts.com According to Bank of America Global Research, Barings BDC Inc (BBDC) is a specialty finance company, regulated as a BDC that invests in debt and equity of middle market businesses. The company's objective is to achieve high total returns through current income from its debt investments and capital appreciation from equity investments. The company has some upside potential fundamentally due to its origination platform and a portfolio geared toward the tail end of the credit cycle, which we appear to be in. Downside risks include deteriorating credit markets even with a stable portfolio, reduced investment and capital markets activity, which has already been reported by some investment banks, and generally poor investment performance expectations. The North Carolina-based $1.1 billion market cap Capital Markets industry company within the Financials sector trades at an elevated 22.6 trailing 12-month GAAP price-to-earnings ratio and pays a very high 9.7% dividend yield. On valuation, BofA sees earnings growing sharply this year after a strong 2021 rebound. EPS is then expected to slow down through 2024, but the Bloomberg consensus forecast is more upbeat looking forward. Dividends are anticipated to increase through next year, resulting in a continued high yield, perhaps in the double digits. Its NAV is about $11.50 at last check and its forward GAAP P/E is near 10, which is quite cheap. BBDC: Earnings, Dividend, Valuation Forecasts BofA Global Research Looking ahead, BBDC's corporate event calendar by Wall Street Horizon is quiet. It has a Q3 unconfirmed earnings date of Wednesday, November 9, after market close. Corporate Event Calendar Wall Street Horizon The Technical Take Baring's valuation and dividend yield are compelling, but its chart is mired in a downtrend that dates back to November last year. After rallying sharply to a high above $11.50, shares have dropped almost 20% with lower highs and lower lows throughout the year. The stock also found resistance at its downtrending 200-day moving average last month, which had confluence with its downtrend resistance line. Also notice the 'volume by price' indicator on the left - once BBDC rallied to the bar indicating the highest volume of shares previously traded, the stock quickly retreated. The $10 to $10.50 range is clearly resistance.
|BBDC||US Capital Markets||US Market|
Return vs Industry: BBDC exceeded the US Capital Markets industry which returned -24.2% over the past year.
Return vs Market: BBDC exceeded the US Market which returned -21.6% over the past year.
|BBDC Average Weekly Movement||2.5%|
|Capital Markets Industry Average Movement||0.5%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: BBDC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BBDC's weekly volatility (3%) has been stable over the past year.
About the Company
Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies.
Barings BDC Fundamentals Summary
|BBDC fundamental statistics|
Is BBDC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BBDC income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.20|
|Net Profit Margin||12.83%|
How did BBDC perform over the long term?See historical performance and comparison
10.9%Current Dividend Yield
Is BBDC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for BBDC?
Other financial metrics that can be useful for relative valuation.
|What is BBDC's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does BBDC's PE Ratio compare to its peers?
|BBDC PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
VRTS Virtus Investment Partners
NOAH Noah Holdings
AMK AssetMark Financial Holdings
BBDC Barings BDC
Price-To-Earnings vs Peers: BBDC is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the peer average (18.1x).
Price to Earnings Ratio vs Industry
How does BBDC's PE Ratio compare vs other companies in the US Capital Markets Industry?
Price-To-Earnings vs Industry: BBDC is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the US Capital Markets industry average (25.1x)
Price to Earnings Ratio vs Fair Ratio
What is BBDC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||43.8x|
|Fair PE Ratio||53.2x|
Price-To-Earnings vs Fair Ratio: BBDC is good value based on its Price-To-Earnings Ratio (43.8x) compared to the estimated Fair Price-To-Earnings Ratio (53.2x).
Share Price vs Fair Value
What is the Fair Price of BBDC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: BBDC ($8.8) is trading above our estimate of fair value ($2.53)
Significantly Below Fair Value: BBDC is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Barings BDC forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BBDC's forecast earnings growth (99.1% per year) is above the savings rate (1.9%).
Earnings vs Market: BBDC's earnings (99.1% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: BBDC's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BBDC's revenue (17% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: BBDC's revenue (17% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if BBDC's Return on Equity is forecast to be high in 3 years time
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How has Barings BDC performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BBDC has a large one-off loss of $84.7M impacting its June 30 2022 financial results.
Growing Profit Margin: BBDC's current net profit margins (12.8%) are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: BBDC's earnings have grown significantly by 47% per year over the past 5 years.
Accelerating Growth: BBDC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BBDC had negative earnings growth (-81.4%) over the past year, making it difficult to compare to the Capital Markets industry average (32.4%).
Return on Equity
High ROE: BBDC's Return on Equity (1.8%) is considered low.
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How is Barings BDC's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: BBDC's short term assets ($436.4M) exceed its short term liabilities ($29.4M).
Long Term Liabilities: BBDC's short term assets ($436.4M) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: BBDC's net debt to equity ratio (106.5%) is considered high.
Reducing Debt: BBDC's debt to equity ratio has increased from 75.6% to 122.3% over the past 5 years.
Debt Coverage: BBDC's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: BBDC's interest payments on its debt are not well covered by EBIT (2.9x coverage).
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What is Barings BDC current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BBDC's dividend (10.91%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: BBDC's dividend (10.91%) is in the top 25% of dividend payers in the US market (4.45%)
Stability and Growth of Payments
Stable Dividend: BBDC's dividend payments have been volatile in the past 10 years.
Growing Dividend: BBDC's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (332.7%), BBDC's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: BBDC is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Jonathan Gerald Bock, also known as Jon, CFA, serves as Chief Executive Officer at Barings BDC, Inc. since August 2022. He is Co-Chief Executive Officer & President at Barings Private Credit Corporatio...
Experienced Management: BBDC's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.
Experienced Board: BBDC's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|17 Jun 22||BuyUS$2,188||Stephen Byers||Individual||236||US$9.27|
|03 Jun 22||BuyUS$19,194||Stephen Byers||Individual||1,850||US$10.38|
|09 May 22||BuyUS$164,352||Stephen Byers||Individual||16,035||US$10.25|
|01 Dec 21||BuyUS$53,997||David Mihalick||Individual||5,000||US$10.80|
|29 Nov 21||BuyUS$54,249||Thomas McDonnell||Individual||5,000||US$10.85|
|28 Sep 21||BuyUS$50,000||Thomas Okel||Individual||4,536.87||US$11.03|
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 67.2%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Barings BDC, Inc.'s employee growth, exchange listings and data sources
- Name: Barings BDC, Inc.
- Ticker: BBDC
- Exchange: NYSE
- Founded: 2006
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Implied Market Cap: US$961.205m
- Shares outstanding: 109.23m
- Website: https://www.barings.com/en-us/guest/funds/barings-bdc
Number of Employees
- Barings BDC, Inc.
- 300 South Tryon Street
- Suite 2500
- North Carolina
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|BBDC||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Feb 2007|
|TRY||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Feb 2007|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/23 00:00|
|End of Day Share Price||2022/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.